Res 1989-127 - Laserfiche WebLink

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of damages due to Department from Contractor is agreed upon or is otherwise determined. SECTION 19, AUDIT A. Unless otherwise directed by Department, Contractor shall arrange for the performance of an annual financial and compliance audit of funds received and performances rendered under this con- tract, subject to the following conditions and limitations: 1. Contractor shall have an audit made in accordance with the Single Audit Act of 1984, P,L. 98-502, and OMB Circular No, 128, "Audits of State and Local Governments", 50 Fed, Reg. 19114 (May 6, 1985), for any of its fiscal years included within the contract period specified in Section 2 of this contract in which Contractor receives more than $25,000 in Federal financial assistance, For purposes of this Section 19, "Federal financial assistance" means assistance provided by a Federal agency in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance or direct appropriations, but does not include direct federal cash assistance to individuals. The term includes awards of Federal finan- cial assistance receíved directly from Federal agencies, or indirectly through other units of State and local government; 2. At the option of Contractor, each audit required by this section may cover either Contrac- tor's entire operations or each department, agency, or establishment of Contractor which receiv- ed, expended, or otherwise administered federal funds; 3. Notwithstanding Section 4 (a)(5) and Section 4 (a)(6) , Contractor shall utilize funds bud- geted under this contract to pay for that portion of the cost of such audit services properly allocable to the activities funded by Department under this contract, provided however that. De- partment shall not make payment for the cost of such audit services until Department has re- ceived such audit report from Contractor; 4. Unless otherwise specifically authorized by Department in writing, Contractor shall submit the report of such audit to Department no later than one hundred twenty (120) days after the date of termination of this contract. Audits performed under Subsection A of this Section 19 are subject to review and resolution by Department or its authorized representative. B. Notwithstanding Subsection A of this Section 19, Department reserves the right to conduct an annual financial and compliance audit of funds received and performances rendered under this con. tract. Contractor agrees to permit Department or its authorized representative to audit Contractor's records and to obtain any documents, materials, or information necessary to facilitate such audit. C. Contractor understands and agrees that it shall be liable to Department for any costs disallowed pursuant to financial and compliance audit(s) of funds received under this contract. Contractor fur- ther understands and agrees that reimbursement to Department of such disallowed costs shall be paid by Contractor from funds which were not provided or otherwise made available to Contractor under this contract. D. Contractor shall take such action to facilitate the performance of such audit or audits conducted pursuant to this Section 19 as Department may require of Contractor. SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS A. Contractor understands and agrees that by the execution of this contract Contractor shall as- sume the responsibilities for environmental review, decision making, and other action which would Page e of 12